I 

114TH CONGRESS 

1ST SESSION H. R. 898 

To amend the Internal Revenue Code of 1986 to provide for the equalization 

of the excise tax on liquefied natural gas and liquefied petroleum gas. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 11, 2015 

Mr. KELLY of Pennsylvania (for himself and Mr. KIND) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

for the equalization of the excise tax on liquefied natural 

gas and liquefied petroleum gas. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Energy Production 

5 Fairness Act’’. 

6 SEC. 2. EQUALIZATION OF EXCISE TAX ON LIQUEFIED NAT7 URAL GAS AND LIQUEFIED PETROLEUM GAS. 

8 (a) LIQUEFIED PETROLEUM GAS.— 

9 (1) IN GENERAL.—Subparagraph (B) of section 

10 4041(a)(2) of the Internal Revenue Code of 1986 is 


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1 amended by striking ‘‘and’’ at the end of clause (i), 

2 by redesignating clause (ii) as clause (iii), and by in3 serting after clause (i) the following new clause: 

4 ‘‘(ii) in the case of liquefied petroleum 

5 gas, 18.3 cents per energy equivalent of a 

6 gallon of gasoline, and’’. 

7 (2) ENERGY EQUIVALENT OF A GALLON OF

8 GASOLINE.—Paragraph (2) of section 4041(a) of the 

9 Internal Revenue Code of 1986 is amended by add10 ing at the end the following: 

11 ‘‘(C) ENERGY EQUIVALENT OF A GALLON

12 OF GASOLINE.—For purposes of this para13 graph, the term ‘energy equivalent of a gallon 

14 of gasoline’ means, with respect to a liquefied 

15 petroleum gas fuel, the amount of such fuel 

16 having a Btu content of 115,400 (lower heating 

17 value).’’. 

18 (b) LIQUEFIED NATURAL GAS.— 

19 (1) IN GENERAL.—Subparagraph (B) of section 

20 4041(a)(2) of the Internal Revenue Code of 1986, as 

21 amended by subsection (a)(1), is amended by strik22 ing ‘‘and’’ at the end of clause (ii), by striking the 

23 period at the end of clause (iii) and inserting ‘‘, 

24 and’’ and by inserting after clause (iii) the following 

25 new clause: 


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1 ‘‘(iv) in the case of liquefied natural 

2 gas, 24.3 cents per energy equivalent of a 

3 gallon of diesel.’’. 

4 (2) ENERGY EQUIVALENT OF A GALLON OF

5 DIESEL.—Paragraph (2) of section 4041(a) of the 

6 Internal Revenue Code of 1986, as amended by sub7 section (a)(2), is amended by adding at the end the 

8 following: 

9 ‘‘(D) ENERGY EQUIVALENT OF A GALLON

10 OF DIESEL.—For purposes of this paragraph, 

11 the term ‘energy equivalent of a gallon of diesel’ 

12 means, with respect to a liquefied natural gas 

13 fuel, the amount of such fuel having a Btu con14 tent of 128,700 (lower heating value).’’. 

15 (3) CONFORMING AMENDMENTS.—Section 

16 4041(a)(2)(B)(iv) of the Internal Revenue Code of 

17 1986, as redesignated by subsection (a)(1) and para18 graph (1), is amended— 

19 (A) by striking ‘‘liquefied natural gas,’’, 

20 and 

21 (B) by striking ‘‘peat), and’’ and inserting 

22 ‘‘peat) and’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to any sale or use of fuel after 

3 September 30, 2014. 

Æ 


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